Humble Group Ab · OMXSTO:HUMBLE
Humble Group Ab — Investor Presentation (April 2022)
46 slides from Humble Group Ab's investor presentation, Apr 28, 2022
Slide 1: Investor Presentation 2022 Q2
INVESTOR PRESENTATION 2022 Q2
Slide 2: Important notice
Important notice IMPORTANT NOTICE This presentation and the information contained herein are being presented by Humble Group AB (publ), reg. no. 556794-4797 (the “Company”). By attending a meeting where this presentation is presented, or by reading this presentation, you agree to be bound by the fol
Slide 3: Today's presenter
Today’s presenter 01 Introduction 02 Business overview 03 M&A SIMON PETRÉN CEO Humble Group 04 Financials PREVIOUS EXPERIENCE: Founder and former CEO of Pändy Foods AB, entrepreneur and investor 05 Summary EDUCATION: M.Sc. at KTH Mechanical Engineering, Product Innovation B.Sc. at KTH Industrial Man
Slide 4: Introduction
Introduction 01 4
Slide 5: Humble Group at a glance
Humble Group at a glance A leading FMCG group in the forefront of functional foods and sustainable products • Humble Group is a Sweden-based FMCG group that supplies cutting edge and healthy sugar reduction and vegan products as well as eco-friendly- and sustainable products for the broader FMCG mar
Slide 6: Humble Group: On a path to disrupt the industry
Humble Group On a path to disrupt the industry HUMBLE GROUP IS A FUTURE-FMCG POWERHOUSE COMMITTED TO ENABLE PRODUCTS AND BRAND POTENTIAL, WITH A FUNDAMENTAL POSITION IN GLOBAL MEGA TRENDS; FUNCTIONAL FOOD, ECO- FRIENDLY AND SUSTAINABILITY, AND VEGAN PRODUCTS VISION MISSION The leading global FMCG gr
Slide 7: We must change the way we live
We must change the way we live Humble Group addresses the largest challenges to our society and environment GLOBAL OBESITY, # PERSONS PROCESSED FOODS ARE ● Obesity has nearly tripled worldwide since 1975 due to ONE OF THE LARGEST increased intake of processed foods Trend towards 2025 HEALTH THREATS
Slide 8: Global megatrends are shaping the future of FMCG
Global megatrends are shaping the future of FMCG Environmental concerns, shifting demographics and customer behaviour are drastically changing one of the largest industries ENVIRONMENT & CLIMATE CHANGE DEMOGRAPHICS • Increased environmentally-friendly agenda in politics, business • A new generation
Slide 9: The world is waking up
The world is waking up Public awareness and government attention has shifted towards reduced sugar consumption THE PUBLIC AND GOVERNMENTS ARE BECOMING AWARE OF THE PROBLEM CONSIDERATIONS FOR THE FUTURE OF FMCG AND THE FUNCTIONAL FOOD INDUSTRY NUMBER OF PUBLISHED ARTICLES ON OBESITY 7 000 6 000 Tax d
Slide 10: Food industry disruptors have become rock stars overnight
Founded 1994 Founded 2009 Oat-based products Plant-based meat products Founded 2016 Founded 2013 Sugar-reduced candy High-protein products Food industry disruptors have Founded 2012 Plant-based baby formula Founded 2012 Low-calorie ice cream changed the landscape and Founded 1999 Founded 2010 become
Slide 11: Business overview
Business overview 02 11
Slide 12: Creating the FMCG powerhouse of tomorrow
Creating the FMCG powerhouse of tomorrow A Group committed to providing consumers innovative, sustainable and healthy products SUSTAINABILITY AND ECO- FRIENDLINESS FOODTECH VEGAN HUMBLE GROUP TODAY THIS IS HOW WE WILL WIN THE GAME Mission driven approach Focus on profitable cash built on health and
Slide 13: Humble Group's DNA
Humble Group’s DNA Committed to providing consumers innovative, sustainable and healthy FMCG products GLOBAL FORCES… …ENABLED BY SUCCESS FACTORS HUMAN HEALTH GLOBAL SUSTAINABILITY INNOVATION ENTREPRENEURSHIP Reduces the risk of obesity, Focus on ensuring a sustainable Challenge, innovate and develop
Slide 14: Driven and committed management team
Driven and committed management team Highly experienced board of directors with strategic support from senior advisors MANAGEMENT & OPERATIONS SIMON PETRÉN NOEL ABDAYEM JOHAN LENNARTSSON MARCUS STENKIL KRISTOFFER ZINN JULIANA BAMBRIDGE CAROLINE PERMAN CEO VP AND COO CFO Head of M&A CAO Head of Susta
Slide 15: M&A journey – the creation of the Humble Group
M&A journey – the creation of the Humble Group Swift transformation with +30 acquisitions during 2020/2021 Change of the strategic A Group positioned for direction for the Group the future of FMCG Bayn Europe AB founded February June August September November February April1) June September October
Slide 16: Company matrix
Company matrix Manufacturers of healthy alternatives are able to charge about 4x as much Large value-add enables high marketing spending Benefit from cross promotion of products in a wide that result in strong brand compared to traditional distribution network alternatives awareness and exclusivity
Slide 17: Global sales network
Global sales network Additional distribution with A-level partners in 50+ countries • Operating entities in 11 key markets • Reaching 100 000 POS • Additional strategic distribution in +50 countries • Access to sport nutrition distribution in 26 different countries ~5 years1) <6 months1) Average tim
Slide 18: Data-driven sales strategy
Data-driven sales strategy Agile go-to-market strategy with initial listings at all key channel partners and significant remaining whitespace OVERVIEW OF SALES CHANNELS CUSTOMER GROUPS – HUMBLE CO. EXAMPLE Select Customer group Description customers Most targeted channel representing nearly ~75% Mas
Slide 19: Real-time follow up on subsidiary and segments
Real-time follow up on subsidiary and segments We provide our entrepreneurs with customized Business Intelligence to help them improve their decision making Real time integration of group companies Customized reporting for different segments and business verticals Improved decision making • Sa
Slide 20: Humble Group operational platform synergies
Humble Group operational platform synergies A FMCG powerhouse that controls and optimise the entire value chain whilst exploiting tangible synergies BUSINESS DISTRIBUTION ENTREPRENEURSHIP PURCHASING TECHNOLOGY MANUFACTURING INTELLIGENCE NETWORK Decentralised Strong purchasing and Share recipes and s
Slide 21: Our Food Tech Vertical
Our Food Tech Vertical Tweek (42%) Other (5%) Wellibites (24%) Werthers (12%) Market leading consolidator within functional foods De Bron (10%) Nellie Dellie (7%) WHAT WE DO BENEFITS OF CONSOLIDATING THE FUNCTIONAL FOOD INDUSTRY Produce and distribute functional food and “Better-for-you” products
Slide 22: Health and eco-friendly are high margin products
Health and eco-friendly are high margin products Humble Groups’s products are marketed as premium products compared to traditional low-cost products ILLUSTRATIVE RELATIVE VALUE-ADD OF HEALTHY ALTERNATIVES AND SUSTAINABLE PRODUCTS PROFIT ATTRIBUTED TO TRADITIONAL CANDY MANUFACTURER PROFIT ATTRIBUTED
Slide 23: Our Sport Nutrition and Ingredients Vertical
Our Sport Nutrition and Ingredients Vertical Market leading consolidator within healthy nutrition & supplements WHAT WE DO SYNERGIES WITHIN THE SPORT NUTRITION & INGREDIENTS VERTICAL Produce and distribute Sports Nutrition and Ingredients intended to improve performance in work-outs and sports I
Slide 24: Innovation is at the core and a key differentiator
Innovation is at the core and a key differentiator Revolutionising technology that replaces sugar on a 1:1 ratio THE RESULT / SOLUTION THE PRODUCERS’ DILEMMA IN SUGAR REDUCTION IS WHAT THAT CONSUMERS WANT TO: Humble Group develops, produces and markets a Reduce the calories intake, unique composit
Slide 25: Our Personal and Home Care Vertical
Our Personal and Home Care Vertical Industry disruptor with a mission to induce a more sustainable living WHAT WE DO CASE STUDY: THE HUMBLE CO. Develop and distribute sustainable, natural and eco-friendly products ● A high-growth eco-friendly oral care brand targeting millennial consumers with a u
Slide 26: Humble Smile Foundation
Humble Smile Foundation Our own non-profit organization to give back to children in need 52 100,000+ 20+ 56 198 1 million+ Active projects worldwide Children helped Partner universities and Partner organizations Volunteers from around Toothbrushes donated professional associations worldwide the worl
Slide 27: Humble Group
humble group.”
Slide 28: Fragmented market ripe for consolidation
Fragmented market ripe for consolidation Market characterised by entrepreneurial driven consolidation and a desire to join our journey VAST UNIVERSE OF POTENTIAL TARGETS M&A STRATEGY AND INVESTMENT CRITERIA Entrepreneurship at heart and a desire to join our journey Continuously evaluate opportun
Slide 29: Investment Strategy
Investment Strategy Becoming a supplier across the entire value chain Sustaining a clear acquisition strategy • Humble has been successful in targeting and acquiring companies that • It is central to continue with an intense deal flow. Below is a strategic framework for the complement our current po
Slide 30: M&A sourcing through dense network
M&A sourcing through dense network The Group forms a robust platform for future acquisitions DRIVEN AND EXPERIENCED M&A FUNDAMENTAL MANAGEMENT ACCELERATOR GREEN PROFILE Continue to build a founder-lead Group Leverage an autonomous group Leverage a profiled eco-friendly and with a strong entrep
Slide 31: Unique market position
Unique market position Unique position to leverage on our technology core and swift go-to-market process through coverage of the entire value chain Humble targets future FMCG-companies, of which many are too small and which do not fit practically and emotionally with the ILLUSTRATIVE business models
Slide 32: Proven access to equity capital and backed by reputable investors
Proven access to equity capital and backed by highly reputable investors A healthy balance sheet from recent equity issues allows us to continue our growth journey 40 Selected shareholders NCPA Holding AB RoosGruppen AB Handelsbanken Fonder 35 Avanza Pension Creades AB Caldas Capital Futur Pension 3
Slide 33: Financial targets follow up
Financial targets follow up On 1 December 2021, Humble Group raised and updated its medium term financial targets (launched 26th March 2021) to a net turnover of SEK 16 billion and a fixed adjusted EBITA target of SEK 1.9 billion respectively, following faster than anticipated growth Growth Profitab
Slide 34: Financials
Financials 04 34
Slide 35: Trading update Q1 2022
Trading update Q1 2022 Sales Adj. EBITDA SEK million SEK million ~10% 1,150 – 1,200 107 - 117 Increased EBITDA and Pro forma sales % margin compared to figures before 175 Q1 2021 consolidation and 975 - 1,025 22 group elimination 2% 85 - 95 25% Expected net sales (post group eliminations) Q1 2022 of
Slide 36: Trading update Q1 2022 for companies consolidated in Q1 2021
Trading update Q1 2022 for companies consolidated in Q1 2021 Currencies Avg curr period Avg prev period Change Companies included Currency SUMMARY SEK 1.00 1.00 0% Amerpharma PLN • Strong organic growth of minimum SEK 54.7m, 56 % CNY 1.47 1.30 14% Bayn Production SEK • Currency SEK gain of minimum S
Slide 37: Synergy study – M2S Sales
Synergy study – M2S Sales Sales and distribution Net sales, Pändy Foods LTM rolling 12 Synergies SEK million • The graph to the left shows Pändy's sales LTM rolling 12 o During 2019-2020, Pändy experienced difficulties growing sales FCB +186% o During the fourth quarter of 2020, the Humble Group acq
Slide 38: Synergy study – M2S and Bayn IP Sharing
Synergy study – M2S and Bayn IP Sharing Manufacturing, ingredient and recipe BAYN + PÄNDY 1 Bayn develops EUREBA® Bayn develops EUREBA®, a unique composition of sweetened fibres Bayn merges with Pändy Bayns Solution EUREBA® allowed Pändy to replace 2 Pändy applies EUREBA® as the artificial sweeten
Slide 39: We have real time monitoring and close LTM numbers
We have real time monitoring and close LTM numbers 365 days of the year. The stable growth shows the continuity in the business and that it’s not contributed to single “one offs” with customers or markets. 39 Source: Company information. Note: Only includes some of the group companies in the Data Se
Slide 40: M&A Pipeline
M&A Pipeline Summary of current M&A pipeline EBITDA split by vertical 17% 1 SPA close to final 8 processes in mature negotiations Distribution Manufacturing & Brand 2 LoIs signed 10 processes in negotiation stage Manufacturing 42% Brand 4 LoIs close to final 29% Total Enterprise Value SEK 2,686m 12%
Slide 41: Illustrative further value potential
Illustrative further value potential CONVERSION TO IFRS REVALUATION OF PROPERTIES CHANGE OF LISTING VENUE The company has communicated its goal to convert to IFRS Real estate properties are currently conservative recognised The company has previously communicated its goal to in 2023, which is expect
Slide 42: Financial development
Financial development Significant financial improvement in Q4 Proforma quarterly net sales Proforma R12 net sales Q4 segment overview2) SEK million SEK million Net sales, SEK million 3.2% 11.6% 11.1% 12.9% 13.4% 13.1% 12.9% (Adj. EBITDA %) 1,200 4,270 1,043 3,749 872 3,350 (12%) 509 1,922 363 1,427
Slide 43: Enterprise value including recent acquisitions
Enterprise value including recent acquisitions Enterprise value including current M&A pipeline EBITDA including current M&A pipeline1) SEK million 8,628 SEK million 983 Full earn out payment over the 2,686 next three years would require EBITDA, for affected 432 5,942 subsidiaries, to be significantl
Slide 44: Summary
Summary 05 44
Slide 45: Investment highlights
Investment highlights RIDING ON SECULAR GLOBAL MEGA TRENDS – HEALTH AND SUSTAINABILITY Optimally positioned to benefit from global megatrends and capture shifting demographics and consumer preferences UNIQUE POSITION – FOODTECH, ECO AND VEGAN Uniquely positioned to benefit from tangible synergies an
Slide 46: Contact
Contact Simon Petrén | +46 70 99 99 455 simon.petren@humblegroup.se 46